- For the most part, the law only applies to consumers who have purchased or leased their new vehicle primarily for personal use but certain business vehicles might apply if the proprietor purchases or leases less than ten yearly. The law applies to cars, pick-up trucks and vans designed for passenger transport. It does not cover standard trucks, motorcycles, motor homes or off-road vehicles.
- In order to receive protection under the lemon law, the first defect must have been reported to the manufacturer within one year of delivery or during the term of the manufacturer's express warranty, whichever occurs first.
- Under Michigan law, the vehicle must have undergone at least four repair attempts for the same problem without success. The manufacturer by law, has one final chance to repair the vehicle and the consumer must sent written notification stating the defect remains and offer the chance for the final repair. Consumers must send the notification by certified mail with return receipt requested so they know when the manufacturer receives the notice. Manufacturers have five business days from receipt to attempt the repair. Consumers must note however, that in order to qualify for protection under the law, the defects and repair attempts must have occurred within two years from the time the consumer reported the first defect. If the vehicle suffers the same problem three more times three years after the first reported problem, the law does not consider this a "lemon"
Additionally, any vehicle out of service for at least 30 calendar days during the stated protection period will also qualify as a lemon. Again, the consumer must notify the manufacturer by mail of the problem and the manufacturer has five business days upon receipt to attempt repair. - The Michigan lemon law stipulates that once a vehicle has met one of the two requirements, the manufacturer must either offer a replacement or refund of the purchase price, including taxes and fees. The consumer has the right to choose which.They have 30 days from the time the consumer notifies them that the final repair attempt has failed to offer a resolution.
- If for any reason the manufacturer does not comply with the compensation request, the consumer must resort to its third-party dispute resolution program if it has one that complies with the requirements set forth by the Federal Trade Commission. The decision is not binding on the consumer and she is free to pursue legal action if she finds the decision unsatisfactory. If the program rules in favor of the consumer, the manufacturer must comply within 30 days of the decision. Consumers cannot avoid this step if the manufacturer has an approved program.
If a consumer decides to pursue legal action, the law entitles the courts to award fees for legal expenses.
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